Hyundai And Kia's Record Sales Prove Betting On Hybrids And EVs Works

Hyundai and Kia set sales records in August, proving that consumers want affordable electrified vehicles.

Hyundai Tucson PHEV

Mack Hogan

By: Mack Hogan

Sep 4, 2024 at 4:00pm ET

Add InsideEVs as a preferred source in Google

Comment

Some automakers are still debating whether consumers want traditional hybrids, plug-in hybrids or EVs.
Hyundai and Kia have a simple answer: Give them all three.
The strategy is paying off, with both brands reporting record sales thanks in no small part to strong EV, PHEV and Hybrid growth.

Legacy American automakers have been wobbling on whether to push EVs, or focus on getting more hybrids onto lots. Japanese automakers have largely focused on hybrids, with weak and limited EV options. German companies have invested heavily in EVs, but their hybrid plans are relatively sparse. Korean giant Hyundai Motor Group seems to have the answer: Push hybrids and EVs. The result of this push was yet another sales record in August.

Hyundai and Kia, its two largest brands, reported record sales figures for August. Hyundai sold 79,278 cars in the U.S. last month, up 22% from last August and the best August sales figure in the brand's history. Kia had an even bigger win. With 75,217 sales last month—up 4% year over year—it wasn't just Kia's best August ever. It was its best month ever. Given that auto sales are cyclical and automakers tend to post their highest numbers in the last few months of the year, that is an extremely good sign for the brand. I'd expect Kia to break its own record again this year.

Hyundai Ioniq 5 XRT (2024)

Hyundai's best-selling EV, the Ioniq 5, is getting a native Tesla-style NACS charging port and a rugged XRT trim to make it more appealing to American buyers.

Hyundai

Both Hyundai and Kia were buoyed by strong growth in EV and plug-in hybrid (PHEV) sales this month. Hyundai EV and overall hybrid sales were up 27% and 69% respectively, from already-high-watermarks last year. That hybrid figure includes PHEVs, but traditional hybrid sales were an even brighter data point: They were up 81% over last August. Ioniq 5 sales were up 35% year-over-year to 4,838 units. The three-row Ioniq 9 is right around the corner and should be on sale by this time next year, too, which should provide a significant boost.

After all, Kia credited the launch of the three-row EV9 with its own 27% EV sales surge. The brand sold 2,388 this August, bringing the year-to-date total up to 13,874 units. Kia PHEV sales were up 43% year-over-year. That compensated from a fall in EV6 sales, down nearly 25% to 1,885 units. The EV6 has been around for a few years, now, and a refreshed version is coming soon. Plus, Kia will soon have the affordable EV3 in showrooms to boost EV sales.

Upcoming Products That Matter

2025 Hyundai Ioniq 5 Gets 'Off-Road' XRT Trim, Native Tesla NACS

The Affordable Kia EV3's Tech Is A Much Bigger Deal Than You Think

What do you think?

View

Comments

Not only are Hyundai Motor Group's EVs, PHEVs and hybrids growing, they're mostly outpacing the growth of internal combustion products. Traditional hybrids are having a particular great year for Hyundai—Santa Fe Hybrid sales are up 120% Tucson Hybrid sales are up 97%—but growth in PHEVs and EVs shows that different consumers are open to many types of electrified vehicles.

Whether the next era is dominated by hybrids, plug-in hybrids or EVs, Hyundai Motor Group's in a helluva position. We still don't know who the losers will be in the electric transition, but Hyundai is the only legacy automaker with a near-guaranteed seat among the winners.